GDP revised down

The final revision of UK Q3 GDP, released this morning, showed worse growth figures than previously expected, showing that the UK is still stuck in recession.

The news comes as a blow for anybody sending money overseas, as the Pound has struggled due to the UK recession, while other European economies have recovered much more quickly.

With no further major UK data out this side of Christmas, do speak to Currency Index now if you have any overseas payments to make.

Forex news this week

Although Christmas is just round the corner, there are still some significant data releases in the next 3 days, particulalry UK GDP which is revised tomorrow morning at 9.30am.

Please click here to see our weekly article with all the news likely to affect exchange rates this week.

Best rate for buying Euros this month

This morning's UK inflation figures came out higher than expected - giving the Pound a boost particularly against the Euro, which is now trading at its cheapest level for 3 weeks.

With more data due out this week, this could be a chance to get a relatively good rate for sending payments in Euros. Contact Currency Index for the latest live rates.

Inflation & unemployment this week

Last week's pre-budget report and this morning's Rightmove house price index have done nothing to help the struggling Pound - there is a lot of data out this week before the Christmas period, which you can see on our weekly article by clicking here.

Contact Currency Index if you would like to discuss any aspect of your own foreign exchange requirements.

House prices up... but manufacturing down

Mixed news in the UK today, as the Halifax house price survey showed a 1.4% increase in house prices in November - but official industrial production figures showed a drop of 8.4% in the year to October.

The Pound fell slightly this morning on release of the figures.

Meanwhile, if you need to send money to Canada, Canadian housing data showed a better-than-expected pick up, although interest rates were kept on hold as expected. The Canadian Dollar is currently trading around $1.72 against sterling [mid-market levels].

This week's currency news

Please click here to see our weekly article for this week's currency news.

With interest rate decisions around the world, the pre-budget report in the UK, and plenty of other data out, this week could see some volatility. Contact Currency Index for the latest news and opinions.

GDP and Economic Recovery

Please click here to see our article on the UK's slow recovery compared to elsewhere in the world - and what it means for exchange rates.

This week's foreign exchange news

Please see our weekly currency article for this week's important data releases.

For Euro-buyers, Thursday is the main day of interest, with the ECB's monthly interest rate decision and accompanying speech, along with European GDP and retail sales.

US Data this afternoon

Anyone who needs to send money to the USA should be aware of a raft of data releases due out this afternoon.

Yesterday's GDP figure was negative, giving slightly better rates for transferring US Dollars. Today we have the following, all realeased at 1330 UK time:

• Durable Goods Orders
• Jobless Claims
• Personal Consumption
• Personal Income

Contact Currency Index this afternoon if you would like to discuss the implications for dollar rates on 0800 043 2623.

GDP revised up - but recession still with us

This morning's GDP figures showed a slight upward revision for the third quarter this year - but still indicate a 0.3% shrink in the economy for the period.

The UK economy has contracted for 6 consecutive quarters, the longest unbroken run since records began in 1955.

The revision was not worse than expected - so we have seen a mixed reaction on foreign exchange markets, with the Pound falling initially but recovering slightly after the announcement.

There is no further major UK data released this week.

Currency news due out this week

Please click here to see our weekly article on this week's important data releases.

Sterling outlook for 2010

Please click to see our article for an overview on the current position of the Pound in international markets.

Bank of England split on QE

Minutes released this morning showed that the Bank of England were split on their quantitative easing decision this month - raising fears that there could be further action ahead.

One member of the committee even voted for an extra £40bn of asset purchasing this month.

The Pound has fallen on the back of this news, and with UK mortgage approval data out tomorrow, there could be further volatility ahead.

Pound up on inflation news

UK inflation figures, released this morning, were better than expected - with the core CPI measure showing a 1.8% increase in the year to October.

Higher inflation makes higher interest rates more likely, so the Pound has taken some strength today across the board.

Beware though, tomorrow morning's Bank of England minutes could throw a spanner in the works if there are hints of more quantitative easing to come. Contact Currency Index if you would like to chat through your options.

This week's news

Please see our regular weekly article for this week's foreign exchange news.

UK inflation tomorrow (Tuesday) at 9.30am, and Wednesday's Bank of England minutes, also at 9.30am, are likely to be the main events this week on the foreign exchange markets.

US Dollar weaker on trade balance data

US Dollar rates have continued to improve slightly, after Friday's weaker-than-expected US trade balance figures.

September's defecit was $36.5bn, over $4bn worse than market expectations.

The US consumer sentiment survey published on Friday was also negative, giving the US Dollar some further weakness - good news for anyone sending money to the USA.

Don't forget, you can fix exchange rates up to 2 years ahead with Currency Index.

Unemployment & Inflation

Yesterday's unemployment figures showed a rise in the UK's jobless total, although not as much as some analysts had feared.

The Bank of England's quarterly inflation report was also slightly negative, with Governer King stating that UK interest rates are likely to remain low until 2011. The Pound is hampered by low interest rates, and dropped accordingly during King's speech.

If other worldwide interest rates start to increase before the UK, exchange rates for sending money abroad could remain low throughout 2010.

Bank of England speech & news tomorrow

Tomorrow sees 3 important events for the Pound:

1. UK unemployment figures (9.30am)
2. Quarterly Bank of England inflation report (10.30am)
3. Bank of England Governer Mervyn King's speech (10.30am)

It is likely to be a volatile morning on the foreign exchange markets. The unemployment and inflation news are always key for the UK economy and therefore the Pound, and King's speech will provide economic projections.

Often, King's speeches are sterling-negative, as the Bank of England tries to maintain realistic expectations in financial markets.

This week's currency update

Please see our weekly article on the Move Channel for all this week's data releases and the outlook for exchange rates.

Important news will be posted here throughout the week, or call us at Currency Index on 0800 043 2623 for the latest market update.

Worldwide Currency Roundup

Please see our monthly article for views on major world currencies in the current economic climate, including an economic overview for the UK, USA and Europe containing what you need to know if you are sending money abroad in the next few months.

Bank of England prints another £25bn

The Bank of England today announced an extra £25bn of quantitative easing - although it stopped short of adding £50bn as some analysts had expected.

The Pound gave a mixed reaction, gaining strength initially, before falling back as markets took the news in. ECB President Trichet also said this afternoon that Eurozone inflation would turn positive soon, signalling that European interest rates may start to go up before those in the UK. This would be likely to make the Euro more expensive.

As the dust settles on these announcements, sterling is back where it started the day against most currencies, although US Dollar exchange rates are slightly better than they were this morning.

Services data send GBP higher

This morning's PMI services data showed an unexpected expansion in the UK's services sector - giving sterling a boost across the board.

There may be a 24 hour window to buy currency between now and the Bank of England's vital quantitative easing announcement tomorrow lunch time - if more money is injected into the economy, analysts expect the Pound to fall significantly.

Speak to us today at Currency Index if you are sending money overseas. You can call free on 0800 043 2623.

Aussie Dollar weaker despite rate hike

The Reserve Bank of Australia put interest rates up overnight as expected - although comments that they may pause the cycle of higher rates in December led the Australian Dollar to weaken off slightly.

Mid-market rates are now comfortably back above 1.80.

If you are transferring money to Australia contact your currency broker to discuss your options - higher interest rates in a country usually lead to a more expensive currency and it is likely the RBA will raise rates again in January, if not December.

Currency Index is now FSA Regulated

We are pleased to announce that from today Currency Index is Authorised and Regulated by the FSA, with reference 504353 on the FSA's Register.

This gives clients even greater peace of mind regarding security of funds, and confirms that Currency Index conforms to the relevant Conduct of Business requirements.

A full list of Authorised companies can be found on the FSA's website.

This week's news

Please see our regular article for this week's currency news:
http://www.themovechannel.com/features/a01630fe-f266/

Lots of data out this week, particularly on Thursday, so do speak to your currency broker if you need to send funds abroad or make a money transfer back to the UK.

Pound back up... a little

It seems that no news is good news for sterling at the moment, and with no major data releases in the UK this week the Pound has crept back up slowly during the last 3 days. Next week's key Bank of England announcement on Thursday could shake things up, so anybody looking to send money overseas may have a window of a few days to look at securing your rate.

Don't forget, Currency Index can book exchange rates up to 2 years ahead, without you needing all your sterling available. Please call for more details.

This week's data

Please see our weekly article for an overview on the market and data releases this week which are likely to affect exchange rates.

Contact Currency Index on 0800 043 2623 if you would like to discuss the latest news relating to your specific requirements.

GDP sends sterling plummeting

This morning's GDP data has shown a contraction of 0.4% in the economy for Q3, dashing hopes that there would be some growth to technically end the recession.

Disappointing data - and the markets have reacted badly, with sterling dropping around 1.5c against both the Euro and US Dollar.

Contact Currency Index for the latest commercial rates.

Retail Sales at 9.30

Following some good days for sterling, this morning's retail sales figures at 9.30am are an important measure of economic activity. If you need to send money overseas, keep an eye on rates around 9.30 and contact Currency Index if you would like us to alert you to any movements.

Bank Minutes Boost Pound

A little more cheer for the Pound today - which has now gained 3% against the Euro and 6% against the US Dollar in the last week. The Bank of England revealed this morning that they voted unanimously for a pause in quantitative easing this month - easing fears that more money would need to be pumped into the economy in November.



The mid-market rates for Euros and Dollars are now above €1.10 and $1.65 respectively, although the outlook is still poor - the UK's debt and fiscal position are likely to stifle any recovery for GBP which remains vulnerable to bad news.

Pound to remain weak until 2014?

Some worrying reading on the Telegraph website over the weekend - Ernst and Young predicting rates around parity for sterling against the Euro for years to come:

http://www.telegraph.co.uk/finance/economics/6360466/UKs-budget-deficit-will-leave-pound-weak-until-at-least-2014.html

Sterling Update

Please see our article for this week's foreign exchange outlook and major data releases.


Mervyn King, the Governer of the Bank of England, is giving a speech tonight at 8.30 which will be watched for clues about quantitative easing. This morning, public finance data is released at 9.30am - if public debt has increased significantly we would expect negative movement for the Pound.

Bank of England sends mixed signals

Some good news for the Pound at last this week, as Bank of England MPC member Paul Fisher told the FT that quantitative easing is now working, "having the scale and impact that we would have hoped for".



The Pound has been struggling on expectations that the Bank would increase QE by pumping more money in to the economy at its next meeting in November. We would expect more volatility leading up to the announcement, as speculation increased as to what the Bank's next move will be.

Unemployment rises

UK unemployment has risen according to official figures out today - but not as much as expected. Sterling has gained a little strength accordingly.

The outlook is still worsening overall for the Pound. See our article on HomesGoFast for an updated analysis on the current situation.

Pound hit by UK inflation

Further bad news for sterling this morning, as the UK's Retail Price Index, a key measure of inflation, fell 1.4% in the year to September. A smaller fall was expected.

Lower inflation means that interest rates are even less likely to rise, and tends to be negative for sterling.

Luckily for anyone sending money in Euros, the Eurozone ZEW economic sentiment survey also came in negative, meaning the EUR exchange rate did not fall as much as it might have done otherwise.

Britain comes bottom of 'quality of life' survey

According to a new survey, the UK has the lowest quality of life compared to 9 other large European countries. Although average household income is higher than anywhere else, the high cost of living, bad weather and long hours mean that France, Spain and Denmark have overall much better quality of life.

This will come as no surprise to those of you buying property overseas, so although exchange rates at the moment mean that property in Europe is relatively more expensive than when the Pound is strong, there is no shortage of Brits wanting to make the move abroad.

If you are making the move, speak to Currency Index about obtaining commercial exchange rates for sending money overeas.

This week's currency news

A lot of data is out this week, so expect exchange rates to be volatile. In the current climate the Pound is struggling so any further bad news is likely to make foreign currency transfers more expensive.

For a list of this week's data releases please see our article here.

CEBR Predicts £1 = €1, $1.40

A damning report over the weekend from the Centre for Economics and Business Research, has predicted the Pound will fall BELOW parity with the Euro (£1 = €1) and below $1.40 against the US Dollar, with UK interest rates staying at 0.5% until 2011.

See the BBC's report for more information.

UK Trade Balance worsens

The UK trade balance for August has risen to -£3bn, above expectations of -£2.5bn, in more bad news for the UK economy and sterling.

The Pound is dropping this morning as a result.

Currency News this week

No joy for those of you waiting to transfer money overseas yet this week - as the Pound was hampered by this morning's negative UK manufacturing data.

For the rest of the week we have some key data which may cause volatility - not least the monthly Bank of England and European Central Bank policy announcements.

Whatever your requirements, do contact a currency company to discuss your currency transfer - optimism in these markets can be expensive.

Wednesday
Overnight - UK consumer confidence
11am - German factory orders

Thursday
1.30am - Australian unemployment rate
11am - German industrial production (August)
12pm - Bank of England interest rate decision
12.45pm - European Central Bank interest rate decision
1.15pm - Canadian housing starts
1.30pm - US jobless claims data

Friday
Midnight - Federal Reserve Chairman Bernanke's speech
7am - German CPI inflation
9am - Halifax UK house price index
9.30am - UK PPI inflation
1.30pm - US trade balance (August)

Australian Interest Rates Up

The Reserve Bank of Australia has become the first major central bank to raise interest rates since the economic crisis - from 3% to 3.25%.

This is significant for anybody who needs to send money to Australia, as higher interest rates increase demand for the currency, and therefore the price tends to increase - in other words, exchange rates for sending money to Australia fall.

This morning, the mid-market rate has fallen below $1.80, and with unemployment figures to come tomorrow overnight, there could be more movement to come if the Australian economy is picking up more quickly than expected.

Sterling Report

Please see our latest article on the current plight of sterling:
http://www.homesgofast.com/view_news/1730/

Rate alert - GBP falling

The Pound is losing significant ground this morning - falling to €1.11 and $1.63 [mid-market rates] overnight on poor UK sentiment.

With little support for sterling or confidence in the UK economy, if this morning's public finance figures at 9.30am do not show some good news, there could be further to fall.

Pound falls dramatically after King speaks out

Mervyn King, the Bank of England's governor, did those of you needing to send money overseas a favour last week when the quantitative easing programme was not extended - but he undid all the good work yesterday with a speech slamming the prospects of a quick recovery in the UK.

As other economies around the world look to a brighter future, it looks like the UK will have a tough time in the next few months. The Pound reacted accordgingly, dropping nearly 2c against both the Euro and the US Dollar.

Monday Blues for the Pound

As often seems to be the case following a positive end to a week, sterling dropped away this morning after last week's gains following the Bank of England's announcement on Thursday.

Much of the improvements in rate last week were wiped out during the course of today, against both the Euro and US Dollar.

This week is all about inflation. We have key figures out in the UK, Europe and the USA, on Tuesday, Wednesday and Thursday. Which economy is performing best at the moment will probably indicate which currency will perform better too.

Elsewhere, look out for the RBA Minutes if you are buying Australian Dollars, and the Swiss interest rate decision if you need to send money to Switzerland. For the latest news contact Currency Index directly.

Pound up as QE programme paused

The Bank of England has said it will not extend its quantitative easing programme beyond £175bn for now - and the Pound has spiked up as a result.

Often such spikes are short-lived, so gains of nearly 1c against the Euro and US Dollar may not be available for long. Contact Currency Index for the latest update on 0800 043 2623.

Bank of England today

Take note of the Bank of England's monthly policy meeting at 12.00 today, whatever your currency requirements there is likely to be some impact.

Interest rates, which used to be the monthly headline from the Bank, are at 0.5% and are not likely to change any time soon. However, the big question in recent months has been whether there will be additional funds pumped in to the economy via 'quantitative easing'.

If the current £175bn programme is increased, we would expect to see the Pound fall significantly. If the amount is left as it is, there may be a small increase for sterling.

The decision is particularly hard to predict because last month the voting committee was split as to the right course of action, with Governer King voting for more action than most of his colleagues.

Whatever your currency needs, contact an experienced currency company today if you are concerned about your own forthcoming transactions.

This week's exchange rate news

There is a bank holiday in the USA for Labour Day today, so trading may be fairly quiet on the – but for the rest of this week we return to key announcements in the UK by the Bank of England on Thursday and on industrial figures on Tuesday.

Last week, Friday’s US employment data was very close to expectations, making little impression on the rate for sending dollars to America. In Australia, speculation that interest rates will be raised soon is making the AUD more expensive, despite the RBA’s decision to keep the central bank rate on hold at 3% last week.

In all cases for sending currency abroad, the Bank of England’s monthly announcement on Thursday is the key event this week. If the Bank continue their policy of quantitative easing, this is likely to be seen as negative for sterling, while any signal that the policy is coming to an end is likely to make exchange rates better. The vote was split last month and this month’s outcome will be taken as an important signal for the UK economy, and therefore sterling's value around the world.

Monday 7th

US MARKETS CLOSED

1100 – German factory orders

Tuesday 8th

Overnight – RICS House Price Balance

0930 – UK Industrial & Manufacturing Production

Wednesday 9th

Overnight – UK Consumer Confidence

0930 – UK Trade Balance

Thursday 10th

Overnight – UK GDP

1200 – Bank of England Interest Rates & Quantitative Easing

1330 – US Trade Balance

Friday 11th

0900 – ECB September Report

0930 – UK PPI Inflation

US Dollar rate down on jobs data

The US Dollar exchange rate has dropped nearly a cent, on the back of stronger-than-expected jobs numbers, released this afternoon.

Sending money to the USA has been getting more expensive in recent weeks, and the improved employment figures have not helped. Mid-market level is now just below $1.63.

Sterling outlook

The Bank of England meets next week and investors will be sensitive to any shift in tone, particularly whether it will extend or pause its £175 bn asset buying programme. This is overshadowing today's positive PMI data, which shows the UK services sector growing at its fastest pace in 2 years.

The Pound gained some value this morning, but for now seems to have tailed off, as all eyes are on next week's key Bank of England announcement on Thursday lunchtime.

This week's currency news

As we enter September, the Pound is set lower than most of the summer so far. Here are this week's major news announcements which could have an effect on commercial exchange rates. Contact Currency Index for the latest news.

TUESDAY 1st
10am - Eurozone unemployment
10pm - US consumer confidence for August

WEDNESDAY 2nd
7pm - FOMC (US interest rate) meeting minutes

THURSDAY 3rd
10am - European retail sales
12.45pm - European interest rate decision
1.30pm - US jobless claims

FRIDAY 4th
1.30pm - US non-farm payroll (key employment figures)

Exchange Rates dropping fast

We have seen the Pound continue to tumble so far this week - despite some positive news in retail sales and inflation figures.

The problem lies with the Bank of England's quantitative easing programme. There is more money being pumped into the economy than analysts expected, and that is causing concern for the UK economy.

Next week will see the central Bank's next announcement on the subject, so until we have some clarity, Currency Index expects the Pound to continue to struggle.

Current interbank [mid-market] rates:
£1 = €1.1450, US$1.6365, AU$1.9525, NZ$2.3840

Exchange rate update

A bad week for sterling - despite UK retail sales for July showing a good improvement, public borrowing figures were very poor, and German/European purchasing figures also showed considerable improvement for the European economy.

Euro interbank rates are now in the 1.15s and US Dollar exchange rates have settled in the 1.65s.

Further afield, the Australian Dollar has dropped below $2 to the Pound again, and NZD rates are falling too.

Monday morning's Nationwide house price index will be important, however there is little else in the pipeline to give sterling any support.

Bank of England send mixed signals

Today's Bank of England minutes (from their interest-rate setting meeting earlier in the month) showed a surprise split on quantitative easing - with 2 members (including Mervyn King) voting for even more extra money for the economy than the £50bn which was injected.

As the extra funds have tended to devalue the Pound, the shock news send sterling tumbling over half a cent against the Euro and Dollar this morning, with the Dollar rate recovering slightly this afternoon.

Tomorrow's UK retail sales will now be interesting - can we get some good news from the high street, or will further gloom add to the weight on sterling exchange rates?

Prices in UK hold steady

Today's UK inflation data shows prices were static in July, compared to analysts' expectations of a slight drop of 0.3% for July's inflation.

Year-on-year, prices rose 1.8%, again above expectations of 1.5%.

The Pound has spiked up a little on the news, although Germany's upbeat ZEW economic sentiment data has halted any huge gains against the Euro.

Thursday's retail sales figures are the next key UK data, so anyone worried about the Pound falling further in the coming weeks, may see this as a 2-day window to look at securing commercial exchange rates.

Rightmove House Prices

Rightmove's keenly watched monthly house price survey has shown a 2.2% drop in house prices in August - disappointing after July's 0.6% increase. As mixed signals continue to come out about the UK economy, it looks increasingly likely that things are not as good as the Treasury would have us believe.

The Pound's recent drop may well continue therefore and Currency Index would urge anyone looking for the best Euro exchange rates or cheapest US Dollar transfers, to consider locking in rates on a forward contract to eliminate the risk of paying even more in the future.

This week's currency news

Comments by the Bank of England’s governor King last week citing a “fragile” recovery at best in 2010 did not help the Pound – as France, Germany and Japan have all now technically come out of recession and the UK is therefore lagging behind its main competitors.

As a result, the Pound has continued to fall against many major currencies, making sending money overseas more expensive. Euro rates are nearly 4c down in the last 10 days, while the US Dollar rate is nearly 7c down in the same period.

There is not a huge amount of significant data this week, although the UK's inflation and retail sales numbers will be interesting. Whatever your currency requirements, contact a currency company to discuss them and make sure you are equipped with the latest news.

Monday 17th

Rightmove House Price Index (already released)

Tuesday 18th

0230 – Australian interest rate meeting minutes

0930 – UK CPI & RPI inflation figures

1330 – US PPI inflation and house building data

Wednesday 19th

1200 – Canadian CPI inflation

Thursday 20th

0930 – UK retail sales

1330 – US jobless claims

Friday 21st

1500 – US home sales

Australian dollar rate at 11 month low

The Aussie Dollar rate has slipped to an 11-month low today of 1.9650 [mid-market], on speculation that Australia will increase their interest rates in the coming months.

This would be the first upward interest rate move by a developed economy, since the financial crisis started last September.

If you need to send money to Australia in the coming months, contact your currency company to discuss your transaction - if interest rates do start to go up in Australia, exchange rates could easily fall further still.

Germany and France out of recession

Germany and France have both posted positive growth data in the last 24 hours - signalling the end, technically, of their recessions.


With the Bank of England stating that any recovery in the UK will be "fragile" at best in 2010, this is a signal that the Euro may gain value over sterling in the next 6 months.


Anybody needing to transfer Euros abroad should therefore be concerned, as falling exchange rates may dominate the rest of 2009.


Contact Currency Index if you would like to discuss your own requirements in detail.

Bank Downbeat on Recovery

The Bank of England says the UK has some way to go before recovering from the financial crisis, and that any recovery in 2010 will be "fragile".

This is contrary to the government's insistence that there will be a sharp rebound in 2010 - not so, according to the Bank's Governor Maervyn King.

This morning's unemployment figures showed an increase to 2.44m - the highest level since 1995.

Unsurprisingly, the Pound has not reacted well this morning, losing nearly a cent against both the Euro and US Dollar.

Contact Currency Index if you would like to discuss the implications for your currency transactions.

Inflation Report Tomorrow

At 10.30 tomorrow morning, the Bank of England's quarterly inflation report is published.

This could have profound effects on sterling's value in the currency markets, particularly after last week's decision by the Bank to extend quantitative easing by £50bn.

The likelihood is that inflation figures will be low - which usually causes the Pound to fall.

Contact Currency Index tomorrow morning if you need to send money abroad and are worried about exchange rates falling - you can call us on 0800 043 2623 from around 8.30am.

Pound continues down

The Pound has continued to lose ground today, as the lack of data in the UK following on from last week's disappointing announcement from the Bank of England left traders with little reason to buy GBP.

Don't forget that you can fix and guarantee an exchange rate up to 2 years in advance by using a Forward Contract with Currency Index. There is a small deposit to pay once a rate has been agreed, providing peace of mind that your currency requirement is then fixed in sterling instead of fluctuating day by day at the behest of international markets.

Please contact Currency Index if you would like to discuss your options.

This week's FX news

A quiet week ahead this week, with little major data out to affect commercial exchange rates. Contact Currency Index for our own views and opinions affecting any currency transactions.

Tuesday 11th

0930 – UK trade balance

1315 – Canadian new house builds

Wednesday 12th

0930 – UK average earnings, unemployment rate and jobless claims

1000 – Eurozone industrial production

Thursday 13th

0700 – German GDP

1330 – US retail sales and jobless claims

Friday 14th

1000 – Eurozone CPI inflation

1330 – US CPI inflation

US employment data boosts Dollar

This afternoon's non-farm payroll data is not the news you were looking for if you need to send money to the USA - the jobless total has fallen more than expected, as the US economy added more jobs in July than analysts had estimated.

The US Dollar has been volatile since the announcement, dropping below 1.67 [interbank rate] briefly but then rallying as the Pound has found some strength accross the board.

Those of you holding out for trading rates above 1.70 might like to reasses their targets following the main monthly employment news of the month from America.

What goes up...

...must come down. The Bank of England today unexpectedly announced a further £50bn injection of cash into the economy - a shock move which has dented the Pound significantly.

Exchange rates dropped over 1c against both the Euro and US Dollar immediately after the announcement at 12.30pm.

Next we look to tomorrow's PPI inflation figures in the morning, and at 2.30 the key monthly US emplyment data is announced.

More good news for GBP

The Pound has continued up this morning - breaking the 1.18 level against the Euro and 1.70 level against the US Dollar [mid-market rates] after more good economic news from the UK.

Manufacturing production was up 0.4% in June, while PMI services data was positive in the UK and negative in Germany. Retail sales also fell unexpectedly in the EU in June.

So the combination of good news in the UK and bad news elsewhere has pushed commercial exchange rates up today - however the interest rate decisions on the UK and Europe tomorrow could shake things up, so do consider looking at rates today if you'd like to take advantage of the recent movements when sending money overseas.

Pound up - this week's FX news

The Pound has soared to a 10-month high against the US Dollar and is near its best against the Euro this year, after Barclays and HSBC reported unexpectedly good profits today.

This week we have a number of important data releases which could make or break the recent rally - keep in touch with Currency Index for the latest news.

Tuesday 4th
Aussie retail sales (2.30am)
Aussie interest rates (5.30am)
Swiss CPI inflation (8.15am)
US income & consumption (1.30pm)

Wednesday 5th
UK manufacturing (9.30am)
European retail sales (10am)
US factory orders (3pm)
New Zealand unemployment rate (11.45pm)

Thursday 6th
Australian unemployment rate (2.30am)
Bank of England interest rates (12pm)
European interest rates (12.45pm)

Friday 7th
UK PPI core inflation (9.30am)
US non-farm payrolls and earnings (2.30pm)

Property market gives UK PLC a boost

Exchange rates for sending money abroad are up across the board today - mostly due to Nationwide's house price survey showing a 1.3% rise in house prices for July.

The UK's biggest building society believes that we may even see house prices finish the year higher than they started - which would have been unthinkable just a few months ago.

This, along with a rise in mortgage approvals announced earlier in the week by the Bank of England, has given the Pound a welcome boost, as good economic news (along with the increased likelihood of higher interest rates in due course) tends to make the currency more attractive to investors.

As a result the Pound is now trading at nearly 1.65 against the US Dollar and for Euro exchange rates, the mid-market rate is back above 1.17 for the first time in weeks.

Quiet week to come?

There is very little important data out this week, as much of the key inflation, interest rate, employment and housing data for the month has all been released earlier in July.

Look out for the following which may cause some volatility in exchange rates:

Today - US new homes sales (3pm)
Tomorrow - US consumer confidence (3pm)
Wednesday - Australian new home sales (1am)
Thursday - US jobless claims (1.30pm)
Thursday - UK consumer confidence survey (released overnight)
Friday - European CPI inflation (10am)
Friday - US GDP (1.30pm)

Friday's Data

Today's figures likely to affect commercial exchange rates are as follows:

8.30am German PMI inflation
9.30am UK GDP
2.55pm US consumer sentiment

Monday also sees the monthly Nationwide house price survey at 7am which is likely to have an impact on UK markets, which are fragile to any news about the recovery (or lack of) in the economy. Contact Currency Index if you are concerned about the implications for your transaction.

Retail sales & mortgages bring some cheer

Today's mortgage approval figures and retail sales numbers for June were both better than expected, which gave the Pound some strength, in a choppy day on the markets.

Tomorrow's UK GDP figure will be eagerly anticipated - if the nation's income is improving significantly, there may be a spike tomorrow afternoon offering the opportunity to send money abroad more cheaply. If the news is bad, perhaps the Pound will end the week on a low note.

Bank of England Boost

Today's Bank of England minutes, unsurprisingly, showed a unanimous vote to keep UK interest rates on hold at 0.5%.

The slight surprise, however, was that the central bank has kept its quantitative easing programme at £1.25bn, resisting the temptation to 'print more money' (the maximum allowed under current legislation is £1.5bn), and noting the worst of the recession is probably behind us.

The pleasing news has given some support to what was a rapidly falling Pound - giving opportunities for foreign currency transfers at better rates than we were seeing.

In the last few days, sterling has been falling consistently - so there may be an opportunity today to secure currency at relatively good levels in case there is any further bad news later in the week.

This week on the markets

This week sees fewer data releases than normal, as most of the key monthly data has come out already. Therefore we expect commercial exchange rates to be less volatile than we have seen so far this month.

Last week's UK inflation data was better than expected, as was the Rightmove house price data released overnight, so the Pound is looking a little stronger this morning. Contact your currency company if you would like to discuss the implications for your own transactions.

This week's main news releases are as follows:

Monday

1.30pm - Canadian foreign investment data

3pm – US economic trends

Tuesday

1.30am - Reserve bank of Australia meeting minutes

2pm - Canadian interest rate decision

4pm – Federal Reserve chairman Bernanke’s speech (USA)

Wednesday

2.30am - Australian CPI inflation

9.30am - Bank of England meeting minutes for July

3pm – US house price index

Thursday

9am – Eurozone current account balance figures

9.30am - UK retail sales data

1.30pm – US jobless claims

Pound creeps up

Despite yesterday's headline-making unemployment figures in the UK, the Pound has not fallen - perhaps because poor figures were already factored into the value of GBP.

A terrible reading from the key German ZEW business survey also helped keep the Euro weak.

For the US Dollar, the Federal Reserve's downbeat outlook on the US recession have helped to weaken the dollar, the exchange rate now is back up above $1.64 to the Pound.

This week's major data is now all out, so anybody with currency requirements should perhaps take stock of the latest movements and speak to Currency Index about securing rates, which can be done up to 2 years ahead of your anticipated requirement.

Inflation on target

This morning's key inflation data has come out exactly as analysts expected - so there has been little effect on the Pound.

Euro exchange rates are now back up in the €1.16s [mid-market level] and the rate for sending money to the USA has recovered above $1.63. This afternoon sees 6 important news releases in the USA, at 1.30pm.

RICS House Price Boost

This morning's Royal Institute of Chartered Surveyors data showed a surprise increase in house prices for June - showing the second-highest monthly increase in the number of houses increasing in price, since the survey began in 1978.

Retail sales data released overnight also showed a 3.2% increase in the year to June.

The Pound has gained ground on these two pieces of positive news - next is retail inflation at 9.30am...

Euro back below 1.15

Sterling has fallen below 1.15 against the Euro [mid-market level] for the first time in a month, as negative sentiment continues in the UK.

Anybody needing to send money to Europe should speak to their currency company for the latest news, as wishful thinking can be expensive in the currency markets.

Sterling has fallen 3% against the single currency, since its peak in mid-June.

This week's exchange rate outlook

Plenty of news due out this week which is likely to affect commercial exchange rates - whichever currencies you need to buy or sell, contact Currency Index for our views on the market.

UK Data
Monday (overnight) - retail sales and RICS house prices
Tuesday (9.30am) - CPI & RPI inflation figures
Wednesday (9.30am) - unemplyment rate for May

European Data
Monday (11.30am) - ECB President Trichet's speech
Tuesday (10am) - industrial production data
Wednesday (10am) - CPI inflation

Amercian Data
Tuesday (1.30pm) - PPI inflation and retail sales for June
Wednesday (1.30pm) - CPI inflation
Wednesday (7pm) - minutes from the last FOMC meeting
Thursday (3pm) - manufacturing survey

Other Data
Canada - Monday (1.30pm) - Bank of Canada business outlook survey
Australia - Tuesday (2.30am) - key business confidence data
Switzerland - Wednesday (8.15am) - May retail sales

Pound better on monetary easing & trade balance

Two important figures out in the UK today have given the Pound a welcome boost. This morning, the trade balance figure showed a defecit of £2.2bn, better than analysts' expectations of £2.75bn. Then, at lunch time, the Bank of England announced they are not using all the funds made available for quantitative easing, putting off the decision to inject a further £25bn into the economy until August.

Sending money abroad has got cheaper during the course of today as a result, with most exchange rate posting gains of around 1%.

Clients wishing to take advantage of a spike in the market should consider booking a forward contract, which secures a fixed exchange rate for the future.

Swiss unemployment up

Swiss unemployment has risen slightly more than expected, according to figures out this morning. The number of Swiss unemployed is now up to 3.6%.

The Swiss Franc weakened around 0.5% on the release of the news, good news if you are sending money to Switzerland.

Industrial data negative

The UK's industrial and manufacturing data both showed suprise falls this morning, in further bad news for the Pound.

Manufacturing and industrial data for May were expected to show an increas on April's figures - but the opposite has happened and damaged expectations of economic recovery, and hence the Pound has fallen.

Commercial exchange rates fell around 0.5c against both the Euro and Dollar on the release of the news.

Pound down as momentum shifts

More losses for the Pound this morning - despite the lack of any major data, last week's slight drop in exchange rates has been compounded, suggesting we have seen the top for sterling for the moment.

If you need to buy Euros at the best rates or send dollars to the USA, we would suggest considering all your options, as holding out for better rates does not seem to be paying off currently.

Tomorrow's manufacturing and house price data will be of interest to the market, and any negative news is likely to bring rates down further.

Pound struggles despite data

Yesterday's US employment data (non-farm payrolls) was bad news for the US economy - but there was little improvement in the exchange rate. This is a worry for anyone needsing to send money to the USA, as normally a negative reading in the States would improve the exchange rate. Has the Pound reached the top for the moment?

In Europe, ECB President Jean-Claude Trichet said after the Eurozone held interest rates, that the decision was because of the "appropriate" cost of borrowing at present, dashing hopes of a Eurozone interest rate cut which would be likely to improve the Euro exchange rate for Brits.

Speak to your Currency Index dealer for some more opinions, but it may be that the good run the Pound has enjoyed in the last 2 months, has come to an end for the moment.

UK economy shrinks most in 50 years

Figures out today showed the UK economy contracted by 2.4% in the first quarter of 2009, the worst figure in 50 years.

The figures were adjusted from earlier indications, and were much weaker than originally estimated.

The Pound has fallen sharply on the news, meaning the best exchange rates this year look like they may be a peak in the market for the moment.

This week's currency news

This week sees a number of data releases which are likely to bring some volatility back to the market, after a reasonably quiet week last week.

If you need to send money overseas, keep in touch with your currency broker for the latest news affecting your exchange rate.

For all rates against GBP
Tuesday - Nationwide house price survey
Tuesday - GDP data 9.30am
Wednesday - manufacturing inflation 9.30am

Australian Dollar
Tuesday - new home sales 1am
Wednesday - retail sales 2am
Thursday - Australian trade balance 2.30am

Euro
Thursday - unemployment rate 10.00am
Thursday - interest rate decision & speech 12.45pm
Friday - retail sales for May 10.00am

US Dollar
Tuesday - June consumer confidence 3.00pm
Wednesday - May home sales 3.00pm
Thursday - weekly earnings 1.30pm
Thursday - non-farm payroll data 1.30pm
Friday - market closed (US bank holiday)

Swiss Franc
Friday - Swiss CPI inflation (8.15am)

Euro weaker on ECB cash injection

The Euro exchange rate has recovered most of its losses of the last couple of days, after the ECB pumped €442bn into credit markets to encourage liquidity to help resolve the Eurozone's recession.

This is similar to the Bank of England's quantitative easing programme, which initially weakened the Pound before seeing it strengthen weeks later.

If the same pattern happens for the Euro, we could therefore be entering a brief period where the single currency is at cheaper levels.

If you are worried about the increased cost in recent months of sending money abroad, don't forget you can fix exchange rates up to 2 years ahead through a reputable currency broker.

Euro rate down on data releases

Euro exchange rates have fallen today, after German consumer confidence and European factory prices both came out higher than expected.

The Euro has strenghtened [become more expensive] across the board, so if you need to send Euros to Spain, France or any other Eurozone country, keep a close eye on rates to make sure you don't lose out.

GBP Outlook

With little data released this week, the Pound has continued its upward trend after a blip on Thursday after poor UK retail sales figures.

We are currently very near the best Euro exchange rates this year so far, and whether the Pound can find any more strength from here will become apparent this week. Analysts were only expecting 1.20 to be achieved towards the end of the year, so we would be surprised to see much more movement in the short term.

This week:

Today 9am – German IFO business survey

Tuesday 9am – European PMI (inflation indicator)

Wednesday 7.15pm – American interest rate decision & speech

Thursday 7am – Nationwide UK house price survey

Thursday 7am – US GDP

Swiss Interest Rates Held

In Switzerland, interest rates were kept on hold this morning at 0.25%. This was as expected, although the Swiss Franc has weakened slightly to 1.7670 [interbank] making money transfers to Switzerland slightly cheaper.

Pound falls on UK employment data

Despite better-than-expected UK jobs data, the headling unemployment rate has risen to its highest level since Labour came to power in 1997.

The Pound has tumbled since the announcement, falling a cent against both the Euro and Dollar. The best Euro exchange rates are now trading around 1.17 as a mid-market rate.

Bank of England minutes today

At 9.30 this morning the minutes from this month's Bank of England meeting are released. Any clues about interest rates going back up later in the year are likely to have a positive effect on the Pound, and therefore the best exchange rates available if you are transferring money overseas.

Keep in touch with your currency company if you would like to be informed of the latest movements affecting your transaction.

5 pieces of good news boost Pound

This morning's data has been overwhelmingly positive for the Pound, with commercial exchange rates available for people sending money abroad improving across the board.

UK CPI for May was up 0.6% (expectations were 0.3%)
UK CPI for the year to May was up 2.2% (1.9%)
UK Retail Prices for May were up 0.6% (0.2%)
UK Retail Prices for year to May were down 1.1% (-1.5%)
UK CPI for year to May was up 1.6% (1.5%)

The Pound gained almost 2c against both the Euro and the Dollar on the release of the news.

This week's currency news

This week's major economic data which is like to affect commercial exchange rates:

Monday:
Eurozone - employment change (10am)

Tuesday:
UK - CPI inflation data (9.30am)
Eurozone - CPI inflation data (10am)
Germany - ZEW economic sentiment (10am)
USA - PPI inflation data (1.30pm)

Wednesday:
USA - Federal Reserve chairman Bernanke's speech (5pm)

Thursday:
Switzerland - interest rate decision (8.30am)
UK - retail sales (9.30am)
Canada - CPI inflation data (12pm)

All these releases are likely to move exchange rates. If you are sending money to Switzerland, Thursday's interest rate decision will be key, while in Europe and the USA there are several important figures to show how each economy is coping with the recession.

New high for Pound

The Pound has continued to recover well after last week's uncertainty, and is currently trading at its best level in 2009 against the Euro.

Rates for sending money to Austria, Spain, Italy France and the other Eurozone countries are now over 1.17 on the interbank markets for the first time in 2009.

Pound recovers on government stability

The Pound has recovered somewhat as Gordon Brown held the first cabinet meeting since his emergency reshuffle.

Markets have reacted positively to Alistair Darling's continuation as Chancellor, while the immediate threat to Brown's leadership seems to have abated.

Confidence in some stability has fed through to forex markets, where the Pound is trading back up at 1.62 against the US Dollar and 1.16 against the Euro. The Australian Dollar rate has recovered to nearly 2.04.

We still expect volatility this week on any further developments, so if you need to buy currency at the best exchange rates for currency transfers make sure you keep in touch with your currency company.

Dollar strenghtens on non-farm data

This afternoon's key American employment data (non-farm payrolls) was much more positive than expected - leading to further strength for the US Dollar against the Pound.

Anyone transferring money in US Dollars will now find their exchange rate 6c lower than its peak only a few days ago, as political trouble in the UK continues to undermine sterling.

Pound plummets on UK political uncertainty

As the pressure increases on Gordon Brown, the Pound is falling rapidly across the board.

If you need to send money abroad contact your currency company urgently to discuss your requirements. Today sees the local election results throughout the day, followed by Euro poll results on Sunday.

Interest rates today

This lunchtime sees interest rate announcements both in the UK (12.00) and Eurozone (12.45).

Although neither central bank has much room for manouevre, the Eurozone announcement at 12.45 is accompanied by a speech from ECB President Jean-Claude Trichet, which often causes some volatility in the Euro exchange rates.

In the UK, there is no accompanying speech, but the interest rate announcement also includes a policy statement on quantititive easing, which can mean all commercial exchage rates against the pound can be affected.

But sterling weakens, is the upward run finished for now?

Wednesday afternoon has seen Euro and Dollar rates start to come back down - have we seen the best exchange rates for now?

- Sterling fell sharply against the dollar on Wednesday, erasing earlier gains after Asian monetary officials said they would keep buying US Bonds

- Weak American employment and services sector data hurt the outlook for global economy hitting riskier assets such as sterling

- The deteriorating market sentiment prompted investors to dismiss earlier strong UK services sector data, as UK shares tumbled 2.3%

- A worsening political crisis for Gordon Brown also helped take some shine from sterling

- Profit taking, "Sterling has had a very good run recently and people are also thinking it may be prudent to take some profit off the table now,"

- Investors are nervous ahead of the Bank of England and the European Central Bank policy decisions, as well as key US jobs data on Friday

- Hazel Blears' decision to step down follows Tuesday's resignation by Jacqui Smith. Both are seen as undermining Brown's authority on the eve of European and local elections

- Investors will also be looking to see whether there are any further announcements on quantitative easing on Thursday

PMI Grows

This morning another good surprise for the Pound - UK PMI (Purchasing Managers Index) showed expansion for May, as opposed to a small contraction expected.

PMI is a measure of the health of the UK services sector, which has been struggling during the recession - so the news is the latest in some boosts for the Pound this week. Sending dollars to the USA is, for example, now at its best level for 9 months.

UK Consumer Confidence Up

This month's Nationwide Consumer Confidence data showed an increase in sentiment in the UK - above analysts' expectations.

The announcement has given the Pound a further boost against both the Euro and US Dollar - making sending money overseas cheaper again as the recent rally for sterling continues.

If you are sending money to Dubai, don't forget that the AED rate is also pegged to the US Dollar, so in both cases the exchange rate is currently the best it's been since Autumn.

UK Elections & Exchange Rates

Anyone needing to transfer money overseas is encouraged to contact their currency company in advance of this Thursday's European and local UK elections.

Historically, confidence in a country has been eroded by landslide defeats for incumbent parties - so international markets (and sterling) may not react well to any Labour wipeout this week.

The Pound is relatively strong at the moment but is still sensitive to negative news.

Australian interest rates held again

The Reserve Bank of Australia last night held interest rates, bad news for any of you making money transfers to Australia. A cut in interest rates may have weakened the Aussie currency, making exchange rates better for buying dollars.

The mid-market GBP-AUD rate has stayed at around the 2.02 level this morning.

Pound gains more strength

The Pound has continued on its recent run, now trading at the best rates for buying Euros and US Dollars since last year.

Sterling touched €1.16 and $1.6450 as traders continued to move out of Euros and Dollars into more risky assets.

Look out for Eurozone and UK interest rate decisions on Thursday which may have an effect on rates in general.

The Reserve Bank of Australia also makes its monthly interest rate decision overnight tonight, which could be important if you are sending money to Australia.

UK house prices in surprise increase

Nationwide this morning has reported a 1.2% rise in house prices for May.

Expectations had been for a 0.3% drop - so the news has given the UK economic outlook - and therefore the Pound - a welcome boost.

With more key data out next week which could potentially provide trouble for sterling, anyone looking to transfer money overseas should contact a currency broker to discuss the latest developments.

Mixed Euro and US data keeps rates steady

The Pound hovered around its newly-found levels against both the Euro and Dollar today, as mixed data from the States and Eurozone did little to encourage either of the currency pairs.

EMU consumer confidence came out at the level expected by analysts, while in the USA there was some good news on the jobs front but bad news in construction of new homes.

As a result sending money in dollars is still around its best level since November, although the mid-market rate has dropped back below 1.60.

For Euro exchange rates, overnight levels of 1.15 were not sustained but a relatively healthy 1.14 is still showing on the live markets.

Tomorrow's Nationwide house price survey in the UK will be watched at 7am for any clues as to the next direction for the Pound.

Best rates this year

The Pound has continued its recent surge, reaching 1.60 against the US Dollar and nearly 1.15 against the Euro.

Both currencies are now around the cheapest they have been all year against sterling.

If you need to transfer money overseas in Euros or Dollars, it is worth discussing your requirements with a UK currency company to make sure you do not miss any opportunities to secure a preferential rate.

This week's data

News out this week which might affect all commercial foreign exchange rates:

Transferring money to the USA
1500 Tuesday - consumer confidence
1500 Wednesday - US house price index and home sales figures
1330 Thursday - durable goods orders
1330 Friday - GDP

Transferring money to Europe
1000 Thursday - consumer confidence
1000 Friday - CPI inflation data

Transferring money to Australia
0200 Thursday - new home sales

UK Data
0001 Friday - consumer confidence
0700 Friday - Nationwide house prices

...and Pound drops back down after S&P Rating

Following overnight gains the Pound has dropped back sharply after the credit agency S&P downgraded the outlook for the UK economy from "stable" to "negative".

If you need to transfer money overseas contact your currency company for the latest developments in a volatile market today.

Pound Continues Up

We have the best US Dollar exchange rates so far this year at the moment, and near the year-high for the best Euro exchange rates too.

Trading this morning is particularly volatile, with both Euro and Dollar rates fluctuating by up to 2c in the last hour. Trade data out this morning showed UK Retail Sales up more than expected - but at the same time business investment has fallen.

Pound steady on Inflation Data

This morning's UK inflation data was slightly lower than expected - but close to analysts' expectations, so there has been no major movement for the Pound.

Transferring money in Euros and Dollars is slightly cheaper than yesterday, as a surge from the Pound in early trading has been sustained.

Rates for the US Dollar are now the best they have been all year.

Pound up on Lloyds resignation

UK shares and currency are on the rise this morning after the resignation over the weekend of Lloyds Banking Group chairman Sir Victor Blank.

The Pound has responded positively to what is seen as the removal of one of the men responsible for the current banking crisis, after Lloyds TSB took over the troubled HBOS Group last year. Both banks are expected to make massive losses this year and the Group is now 43% owned by the taxpayer.

Transferring money abroad is, as a result, slightly cheaper today then last week in the case of most currencies. If you would like to discuss taking advantage of a spike in exchange rates, contact your currency company straight away.

This week for the Pound

9.30am on Tuesday and Wednesday see this week's main data releases for the Pound - UK CPI/RPI inflation figures on Tuesday, and Bank of England Minutes on Wednesday.

Anyone sending money abroad this week should be aware that both releases are likely to affect exchange rates across the board.

For data releases overseas which might affect individual currencies, please check back here later in the week or contact a currency broker to advise you of all relevant news.

Eurozone GDP posts largest drop on record

European GDP showed a 4.6% year-on-year decline - the biggest fall on record for the economic area.

Against the Pound, there has been little movement - surprising given the negative Euro-news which might have weakened the single currency off and provided better exchange rates for sending money to Europe.

The next major data out is from the USA, where Consumer Price Index (a leading inflation indicator) is announced at 1.30pm. We expect some volatility for US Dollar exchange rates.

Amercan data this afternoon

1.30pm sees some important data out if you are sending money to America.

Jobless claims and Producer Price Indicator figures are likely to affect the value of US Dollar exchange rates.

Mid-market rates against the Pound are currently at 1.5150.

Inflation report today

10.30am today is Bank of England Governer Mervyn King's speech and the release of the Bank's quarterly inflation report.

We would expect volatility in all commercial exchange rates around this time. If you are looking to buy or sell any currency against the Pound, contact your currency exchange broker who will be able to monitor the situation for you.

Unemployment up to 7.1%

UK unemployment has risen to 7.1%, a bigger increase than expected. The Pound has not reacted too badly, although a slight dip from the day's highs against both the Euro and US Dollar have made sending money abroad slightly more expensive.

Exchange rates remain reasonably stable but are likely to be sensitive to data releases for the rest of the week.

UK Data Boosts Pound

This morning's UK manufacturing and trade balance data has given the Pound a welcome boost for anyone looking to transfer money abroad.

Exchange rate are up across the board after better-than-expected figures were released at 9.30am.

Data out this week

This is a busy week for foreign exchange news - commercial exchange rates are likely to be volatile across the board.

12th May (Tuesday)
0030 US Federal Reserve Chairman Bernanke’s speech – likely to affect US Dollar rates for sending money to the USA
0930 UK industrial and manufacturing data, likely to affect the Pound significantly

13th May (Wednesday)
0930 UK unemployment data
1030 Bank of England quarterly inflation report and accompanying speech
1330 USA retail sales data

14th May (Thursday)
0200 Australian inflation expectations
1330 US factory inflation
2345 New Zealand retail sales data

15th May (Friday)
0700 German GDP
1000 European inflation figures, likely to cause movements in the Euro exchange rate

American and UK data out Friday

Friday sees the monthly "non-farm payroll" data from the USA - a key indicator of the employment market and typically a volatile moment for the US Dollar.

If you need to send money to America, 1.30pm is the key moment. If more jobs have been created in the US economy than expected, the dollar is likely to strengthen and become more expensive.

Also on Friday, UK PPI (Producer Price Index) figures are out at 9.30am. This is an important measure of inflation and can give the Pound a boost - or the opposite - which will affect all exchange rates if you are sending money abroad.

UK & Eurozone interest rates

As expected, at today's MPC and ECB meetings, the UK interest rate has been held at 0.5%, while the Eurozone rate has been cut to 1%.

The cut was already priced in to forex markets, meaning the exchange rate for buying Euros did not improve much. Jean-Claude Trichet's accompanying speech has however caused some volatility, as the Eurozone for the first time discussing a quantitative easing programme similar to those in the UK and USA.

The net result has been strength for the Euro, which is back down around the 1.12 level, having peaked at 1.1409 in earlier trading today. Currency brokers will be able to advise you of the latest movements.

UK and EU interest rates today

The Eurozone's ECB and UK's MPC today release their monthly interest rate decisions - the UK at 12.00 and Eurozone at 12.45.

A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.

The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 - so anyone sending money to France, Spain or Portugal will be pleased.

If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.

Australian Dollar dips below 2.00

The Australian Dollar has fallen below $2 to the Pound for the first time in recent memory this morning, due to a combination of factors which have combined to make sending money to Australia yet more expensive this week.

1. Australian interest rates were held on Tuesday
2. Retail sale in Australia rose more than expected (2.2% in March)
3. Australian inflation increased
4. Investors are switching back to higher-yielding currencies like the Aussie

All these have placed the Aussie in high demand, increasing the price and therefore decreasing the exchange rate. If you have to send Australian dollars abroad for any reason in the next few weeks or months, contact your UK currency company for some help.

Euro cheaper on interest rate speculation

The Pound pushed above 1.13 against the Euro in trading today, following speculation that the ECB will cut interest rates this Thursday from 1.25% to 1%.

Lower interest rates tend to mean a weaker currency - and therefore better exchange rates if you are transferring money abroad, and in this case sending Euros to France, Italy, Portugal or elsewhere.

The ECB's announcement comes on Thursday lunch time - if their interest rate is not slashed, the Euro could rebound causing exchange rates to fall back again.

Speak to your currency broker if you have any forthcoming Euro requirements, and don't forget you can fix exchange rates in advance for up to 2 years.

Eurozone PMI falls

European factory prices are still declining faster than expected, according to figures out this morning.

In a Euro-negative announcement, Euro exchange rates have improved against the Pound, good news for anyone sending money to a French notaire for a property purchase for example.

Producer prices fell 0.7% for March and 3.1% for the year to end of March, against analysts' expectations of 0.5% and 2.9% respectively.

Australian interest rates held

Overnight the RBA kept Australian interest rates on hold at 3%. Those of you sending money to Australia would have been hoping for a cut, which could have improved the exchange rate.

Aussie retail sales and emplyment data are also out this week.

Euro & Dollar Rates Up

European markets have been open on Monday, during the UK bank holiday, and a fall in retail sales figures in Germany has weakened the Euro slightly. Mid market rates were nearly back at 1.12 late on Monday - the best Euro exchange rates for a couple of weeks.

At the same time, investors have moved to slightly riskier assets again, resulting in the 'safe' US Dollar being sold off over the weekend. A reduction in demand means a cheaper dollar and better rates if you are sending money to the USA to pay for a property or importing goods.

There is more data out in the USA, Europe and the UK this week which could affect your rates - check back here for the latest news or contact your UK currency company directly for news & analysis relevant to your exact requirements.

Australian Dollar rates this week

Any of you looking to emigrate down under will need to think about sending money to Australia and be worried about recent poor exchange rates.

This week, a few important data releases will give us a clue as to the future direction of the rate - and may provide opportunities to buy or fix exchange rates for the future.

At 4.30am on Tuesday the RBA interest rate decision is announced - a cut in Aussie interest rates would do no harm to the prospects of better Australian exchange rates. Retail sales data is then released at 2.30am on Wednesday, followed by employment figures at 2.30am on Thursday.

Check with your currency broker each morning for any differences in exchange rates and full analysis of the figures.

UK PMI gives Pound a boost

This morning's Purchasing Managers Index data, a measure of business conditions in the UK manufacturing sector, has come out significantly higher than expected.

The Pound has received a welcome boost. Exchange rates against the Euro and US Dollar are up around 2c each, so property buyers sending Euros to Spain for example will be pleased with the news.

With the long weekend approaching, be aware that the markets still trade in many countries, so rates can move over the bank holiday. Call your currency broker to discuss your options.

House prices decline again

The monthly Nationwide house price survey out today shows a 0.4% fall in April, although the pace of decline has slowed.

The news is a blow to the beleagured housing market after HMRC's figures recently showed an increase in the number of property transactions.

Falling house prices mean that interest rates are likely to stay low for some time while the Bank of Enlgand tried to encourage lending. In turn, that means the Pound suffers due to reduced international demand - so exchange rates are unlikely to improve.

The Pound fell slightly on the news this morning, making money transfers to America and sending Euros to France or the rest of the Eurozone, slightly more expensive.

Fed expects weakness to persist

At the monthly Federal Reserve interest rate meeting in the USA last night, as expected there was no change to the 0.25% base rate in operation.

Following news that ths US economy contracted more than expected during the first quarter, the Fed said "the economy has continued to contract", adding that it would "remain weak for some time".

The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.

UK Mortgage Lending falls back

Mortgage lending in the UK fell for the first time in 4 months during March, figures out today show.

6.8% less new mortgages were issued than in February.

The news is a blow after some encouraging recent data suggesting the housing market may at last be picking up - and the news has hit the Pound on foreign exchange markets this afternoon.

The Pound fell around 1c against the Euro and US Dollar, while sending money to Australia is now over 1% more expensive than yesterday. Candian Dollar exchange rates have also fallen.

Pound Boosted by CBI Survey

The Confederation of British Industry has reported a shock rise in high street sales in April - the best result since January 2008.

Although the "green shoots of recovery" may be some way off, the majority of retailers reported increased sales for April, compared to analysts' expectations of 40% more who were expected to report declining sales.

As a result the Pound has dramatically come back in to demand, showing increases of over 1c against the Euro and US Dollar since the data was released this morning.

If you need to transfer money abroad do contact your currency company to discuss your options.

Aussie, New Zealand Rates Up

An opportunity this morning for anybody needing to send money to Australia or make money transfers to New Zealand. The Swine Flu panic has sent investors fleeing to hold assets in US Dollars (a so called "safe haven" currency) - instead of the Antipodeans.

As a result the Aussie and New Zealand have been sold off overnight leading to better exchange rates.

Although both currency rates are not as good as last year, in the current climate of weak sterling, any spike like this is good news. Speak to your UK currency company to find out your options.

Sterling down in Budget aftermath

The Pound is struggling in early Monday trading, further to a raft of negative data released last week including the Budget on Wednesday, along with GDP, unemployment and inflation figures which all worsened in a terrible week for the UK's economic prospects.

Sterling may struggle to recover for some time - so anybody looking to send money overseas in the coming months may do well to consider fixing an exchange rate for future delivery. Speak to your currency broker if you would like to discuss your options.